HomeMy WebLinkAboutR-1990-D5737 Community development RESOLUTION NO.
A RESOLUTION authorizing an agreement with the Department of Community
Development of the State of Washington, for a loan for
partial reimbursement of costs for improvements to Tieton
Drive between 16th Avenue and 4th Avenue.
WHEREAS, the City contemplates approximately 5,000 linear feet of
street improvements in the City of Yakima for Tieton Drive between 16th
Avenue and 4th Avenue; and
WHEREAS, a loan for partial reimbursement for the cost of such
improvement by the State of Washington, Department of Community Develop-
ment, is available upon execution by the City of the attached agreement
document; and
WHEREAS, the City Council deems it to be in the best interests of
the City that the attached agreement document be executed by the City,
accordingly, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager and City Clerk of the City of Yakima are hereby
authorized and directed to execute an agreement with the State of Wash-
ington, Department of Community Development, for the purpose mentioned
above, a copy of which agreement is attached hereto and by reference,
made a part hereof.
ADOPTED BY THE CITY COUNCIL this 24th day of April, 1990.
MAYOR
ATTEST:
CMC—
CITY CLERK
ORDI 13
Cery
PUBLIC WORKS TRUST FUND
LOAN AGREEMENT
NUMBER PW -5 -90- 280 -050
City of Yakima
PART I: ENTIRE AGREEMENT
This agreement, and incorporated attachments, contains all terms
and conditions agreed to by the DEPARTMENT and the LOCAL
GOVERNMENT. An attachment to this agreement, ATTACHMENT I: SCOPE
OF WORK, consists of a description of local project activities,
certification of the project's useful life, and identification of
estimated project costs and fund sources and is, by this reference,
incorporated into this agreement as though set forth fully herein.
In addition, ATTACHMENT II: ATTORNEY'S CERTIFICATION, is by this
reference incorporated into this agreement.
The DEPARTMENT and the LOCAL GOVERNMENT have executed this
agreement as of the date and year last written below.
DEPARTMENT OF COMMUNITY LOCAL GOVERNMENT
DEVELOPMENT
Name 4(i', / ►
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Title Tit -
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Date to
ATTEST: X11)1- 1 -3--- A Et-41}1.7
City Clerk
Approved as to Form by c ( (000 ( R- c3 3
Attorney General Taxpayer Identification Number
o•n J. W:n
A--sist.nM torney General
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Date
PART II: INTRODUCTION
This loan agreement is made and entered into by and between the
DEPARTMENT OF COMMUNITY DEVELOPMENT, a department of the state of
Washington (referred to as the "DEPARTMENT ") on behalf of the
PUBLIC WORKS BOARD (referred to as the "BOARD "), and City of Yakima
(referred to as the "LOCAL GOVERNMENT ").
The DEPARTMENT has received an appropriation from the Washington
State Legislature under the authority of Chapter 43.155 RCW to
provide financial assistance to selected units of local government
for the repair, replacement, reconstruction, rehabilitation, or
improvement of bridges, roads, domestic water systems, sanitary
sewer, and storm sewer systems. Acting under the authority of
Chapter 43.155 RCW, the BOARD has selected the LOCAL GOVERNMENT to
receive a Public Works Trust Fund loan for an approved public works
project.
PART III: PURPOSE
The DEPARTMENT and the LOCAL GOVERNMENT have entered into this
agreement to undertake a local public works project which furthers
the goals and objectives of the Washington State Public Works Trust
Fund Program. The project will be undertaken by the LOCAL
GOVERNMENT and will include the activities described in ATTACHMENT
I: SCOPE OF WORK, as well as in the Public Works Trust Fund
Application submitted to the BOARD and postmarked on or before
July 21, 1990, by the LOCAL GOVERNMENT and upon which this
agreement is based. The assisted project must be undertaken in
accordance with PART IV: TERMS AND CONDITIONS, and all applicable
state and local laws and ordinances, which by this reference are
incorporated into this agreement as though set forth fully herein.
PART IV: TERMS AND CONDITIONS
The parties to this agreement agree as follows:
4.01 Rate and Term of Loan
The DEPARTMENT, using funds appropriated from the Public Works
Assistance Account, shall loan the LOCAL GOVERNMENT a sum not to
exceed $803,157. The interest rate shall be three percent (3 %)
per annum on the outstanding principal balance. The term of the
loan shall not exceed twenty years, with the final payment due
July 1, 2010.
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4.02 Local Proiect Share
The LOCAL GOVERNMENT pledges an amount of locally - generated revenue
not less than ten percent (10 %) of the total eligible portion of
the project cost not funded by federal or state grants as
identified in ATTACHMENT I: SCOPE OF WORK, to be verified at the
time of project close -out. Any change in the percentage of
locally - generated funds may require an adjustment in the loan
amount or interest rate charged, or both. In such event, the LOCAL
GOVERNMENT agrees to execute an amendment to this agreement
adjusting the loan amount or interest rate, as appropriate.
Local project share must consist of expenditures eligible under
WAC 399 -30- 030(3) and be related only to project activities
described in ATTACHMENT I: SCOPE OF WORK. These expenditures may
be made up to twelve (12) months prior to the execution of the loan
agreement and verified at the time of project close -out. PUBLIC
WORKS TRUST FUND MONIES MAY NOT BE USED TO REIMBURSE THE LOCAL
GOVERNMENT FOR ANY COSTS INCURRED PRIOR TO EXECUTION OF THIS LOAN
AGREEMENT.
4.03 Disbursement of Loan Proceeds
The DEPARTMENT shall issue warrants to the LOCAL GOVERNMENT for
payment of allowable expenses incurred by the LOCAL GOVERNMENT
while undertaking and administering approved project activities in
accordance with ATTACHMENT I: SCOPE OF WORK. In no event shall the
total Public Works Trust Fund loan exceed ninety percent (90 %) of
the eligible actual project costs. The disbursement of loan
proceeds shall be initiated by the LOCAL GOVERNMENT on a Washington
State Invoice Voucher form provided by the DEPARTMENT. The loan
funds will be disbursed to the LOCAL GOVERNMENT as follows:
Within thirty (30) days of the formal execution of this agreement,
a sum not to exceed fifteen percent (15 %) of the approved Public
Works Trust Fund loan shall be disbursed by the DEPARTMENT to the
LOCAL GOVERNMENT.
Within thirty (30) days of the execution of a Notice to Proceed
which follows the formal award of a construction contract, a sum
not to exceed sixty percent (60 %) of the approved Public Works
Trust Fund loan shall be disbursed by the DEPARTMENT to the LOCAL
GOVERNMENT, except in the case of engineering services contracts.
If the approved project described in ATTACHMENT I: SCOPE OF WORK
is solely for the completion of engineering studies, a sum not to
exceed sixty percent (60 %) of the approved Public Works Trust Fund
loan shall be disbursed by the DEPARTMENT to the LOCAL GOVERNMENT
within thirty (30) days of the execution of a Notice to Proceed
following the formal award of a contract for engineering services.
3
At the time of project completion, a Close -out Report shall be
submitted to the DEPARTMENT by the LOCAL GOVERNMENT, certifying
total actual project costs. The final Public Works Trust Fund loan
disbursement shall not bring the total loan in excess of ninety
percent (90 %) of the eligible project costs or the total of
$803,157, whichever is less, nor shall this disbursement occur
prior to the completion of all project activities EXCEPT THAT if
a hardship would exist without the infusion of the final loan
monies, the BOARD may authorize the disbursement of a portion of
the remaining loan funds prior to actual project completion. The
Close -out Report shall serve as a contract AMENDMENT for
determining the final loan amount, interest rate, and local share.
In the event that the final costs identified in the Close -out
Report indicate that the LOCAL GOVERNMENT has received Public Works
Trust Fund monies in excess of ninety percent (90 %) of eligible
costs, all funds in excess of ninety percent (90 %) shall be repaid
to the DEPARTMENT within thirty (30) days of submission of the
Close -out Report.
4.04 Interest Earned on Public Works Trust Fund Monies
All interest earned on funds disbursed by the DEPARTMENT and held
by the LOCAL GOVERNMENT shall accrue to the benefit of the LOCAL
GOVERNMENT and be applied to the eligible costs of the approved
project. Benefits shall accrue in one of two ways:
1. Reduce the amount of the Public Works Trust Fund loan.
2. Pay part of the eligible project costs that are in excess of
ATTACHMENT I: SCOPE OF WORK estimates. (Overrun of project
costs.)
The LOCAL GOVERNMENT shall establish procedures to ensure that all
monies received from the Public Works Trust Fund loan can be
readily identified and accounted for at any time during the life
of this loan agreement. Such procedures shall consist of the
establishment of a separate fund, account, sub - account or any other
method meeting generally accepted accounting principles.
4.05 Time of Performance
The LOCAL GOVERNMENT shall begin the activities identified within
ATTACHMENT I: SCOPE OF WORK no later than three (3) months after
the date of loan agreement execution and reach project completion
no later than twenty -four (24) months after the date of agreement
execution.
Failure to perform within the time frame described in the preceding
paragraph may constitute default of this agreement and require the
immediate repayment of any loan funds disbursed. In the event of
4
extenuating circumstances, the LOCAL GOVERNMENT may request, in
writing, that the BOARD extend the deadline for project completion.
The BOARD may, by a two - thirds vote, extend the deadline.
This loan agreement shall be in place during the entire term of the
loan regardless of the time of actual project completion.
4.06 Repayment
The LOCAL GOVERNMENT shall repay the loan solely from utility
revenues, general obligation revenues, or a combination thereof and
identified as required by Section 4.04. The name of the fund,
account or sub - account shall be ?FUND 14:2.-ARIERIkL.S1 RAID.
OPTIONAL UTILITY SYSTEM REPAYMENT
The LOCAL GOVERNMENT shall be obligated to make all such repayments
only from the gross revenue of the City of Yakima
Utility after the payment of and
interest on any outstanding revenue bonds and bonds issued in the
future on a parity therewith which constitute a lien or charge on
that gross revenue.
Nothing in this section shall absolve the LOCAL GOVERNMENT of its
obligation to make loan repayments when due and to adjust rates,
fees or surcharges, if necessary, to meet its obligations under
this agreement.
OPTIONAL UTILITY LANGUAGE
AGREED TO BY:
Department of LOCAL GOVERNMENT
Community Development
The first loan repayment under this agreement is due July 1, 1991
and subsequent installments are due on July 1 of each year during
the term of the loan. The first repayment under this agreement
shall consist of interest only at the rate of three percent (3 %)
per annum, calculated on a 360 -day year of twelve 30 -day months,
applied to funds received from the DEPARTMENT. Interest will begin
to accrue from the date the DEPARTMENT issues each warrant to the
LOCAL GOVERNMENT. Subsequent repayments shall consist of 1/19th of
the principal plus interest on the unpaid balance of the loan. The
final payment shall be an amount sufficient to bring the loan
balance to zero.
5
The LOCAL GOVERNMENT has the right to repay the unpaid balance of
the loan in full at any time, and the right to repay at a faster
rate than is provided in this agreement, provided that any such
payment must equal or exceed the amount normally due on an annual
basis.
The LOCAL GOVERNMENT will repay the loan in accordance with the
preceding conditions through the use of a check, money order, or
equivalent means made payable to the DEPARTMENT and sent to:
Department of Community Development
Administrative Services Division /Fiscal Unit
Ninth and Columbia Building
Mail Stop GH -51
Olympia, Washington 98504 -4151
4.07 Default in Repayment
Loan repayments shall be made to the DEPARTMENT in accordance with
Section 4.06 of this agreement. A payment not received within
thirty (30) days of the due date shall be declared delinquent.
Delinquent payments shall be assessed a penalty of twelve percent
(12 %) interest per annum calculated on a 360 -day year.
Upon default in the payment of any annual installment, the
DEPARTMENT may declare the entire remaining balance of the loan,
together with interest accrued, immediately due and
payable. Failure to exercise its option with respect to any such
repayment in default shall not constitute a waiver by the
DEPARTMENT to exercise such option for any succeeding installment
payment which may then be in default. The LOCAL GOVERNMENT shall
pay the costs and reasonable legal fees incurred by the DEPARTMENT
in any action undertaken to enforce its rights under this section.
4.08 Recordkeeping and Access to Records
The LOCAL GOVERNMENT agrees to keep such records as the DEPARTMENT
may require. Such records will include information pertinent to
work undertaken as part of the project, including demonstration of
compliance with the terms and provisions of this agreement and all
applicable state and local laws and ordinances. The LOCAL
GOVERNMENT agrees to retain these records for a period of three
years from the date of project completion.
The DEPARTMENT and duly authorized officials of the state shall
have full access and the right to examine, excerpt, or transcribe
any pertinent documents, papers, records, and books of the LOCAL
GOVERNMENT and of persons, firms, or organizations with which the
LOCAL GOVERNMENT may contract, involving transactions related to
this project and this agreement.
6
4.09 Reports
The LOCAL GOVERNMENT, at such times and in such forms as the
DEPARTMENT or the BOARD may require, shall furnish the DEPARTMENT
with such periodic reports as it may request pertaining to the
activities undertaken pursuant to this agreement, including the
Close -out Report, and any other matters covered by this agreement.
Failure to file periodic reports as requested may result in
termination of this agreement as per Section 4.13.
4.10 Indemnification
The LOCAL GOVERNMENT will defend, protect, indemnify, save, and
hold harmless the DEPARTMENT, the BOARD, and the State of
Washington from and against any and all claims, costs, damages,
expenses, or liability for any or all injuries to persons or
tangible property, arising from the acts or omissions of the LOCAL
GOVERNMENT or any authorized contractor, or any employees or agents
of either in the performance of this agreement, however caused.
In the case of negligence of both the DEPARTMENT and the LOCAL
GOVERNMENT, any damages allowed shall be levied in proportion to
the percentage of negligence attributable to each party.
4.11 Amendments, Modifications, and Waivers
Except for an increase in the amount of the loan governed by this
agreement or for an extension of the time of performance under
Section 4.05, the LOCAL GOVERNMENT or the DEPARTMENT may request
an amendment or modification of this agreement. However, such
amendment or modification shall not take effect until approved in
writing by both the Department and the LOCAL GOVERNMENT and
attached hereto. No conditions or provisions of this agreement may
be waived unless approved by the DEPARTMENT in writing.
4.12 Disputes
Except as otherwise provided in this agreement, any dispute
concerning a question of fact arising under this agreement that is
not disposed of by this agreement shall be decided by a panel
consisting of a representative of the DEPARTMENT, a representative
of the LOCAL GOVERNMENT, and a representative of the BOARD. The
panel shall reduce its decision to writing and furnish a copy to
all parties to the agreement. The decision of the panel shall be
final and conclusive.
This clause does not preclude the consideration of questions of law
in connection with decisions provided for in the preceding
paragraph provided that nothing in this agreement shall be
construed as making final the decisions of any administrative
official, representative, or board on a question of law.
7
4.13 Termination for Cause
If the LOCAL GOVERNMENT fails to comply with the terms of this
agreement, or fails to use the loan proceeds only for those
activities identified in ATTACHMENT I: SCOPE OF WORK, the
DEPARTMENT may terminate the agreement in whole or in part at any
time. The DEPARTMENT shall promptly notify the LOCAL GOVERNMENT
in writing of its determination to terminate, the reason for
suchtermination, and the effective date of the termination. Upon
termination of the loan agreement, the DEPARTMENT shall declare the
entire remaining balance of the loan, together with any interest
accrued, immediately due and payable.
4.14 Governing Law and Venue
This agreement shall be construed and enforced in accordance with,
and the validity and performance hereof shall be governed by, the
laws of the state of Washington. Venue of any suit between the
parties arising out of this agreement shall be the Superior Court
of Thurston County, Washington.
4.15 Severability
If any provision under this agreement or its application to any
person or circumstances is held invalid by any court of rightful
jurisdiction, this invalidity does not affect other provisions of
the agreement which can be given effect without the invalid
provision.
4.16 Project Completion
The DEPARTMENT will require and notify the LOCAL GOVERNMENT to
initiate a Close -out Report when the activities identified in
ATTACHMENT I: SCOPE OF WORK are completed. The LOCAL GOVERNMENT
will provide the following information to the DEPARTMENT:
1. A description of the actual work performed, in addition to a
certified statement of the actual dollar amounts spent, from all
fund sources, in completing the project as described.
2. Certification that all costs associated with the project have
been incurred. Costs are incurred when goods and services are
received and /or contract work is performed.
3. Copies of the approved closure reports from the Department of
Revenue and the Department of Labor and Industries, certifying that
all sales taxes have been paid and appropriate industrial insurance
and prevailing wages have been paid.
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In accordance with Section 4.03 of this agreement, the LOCAL
GOVERNMENT will submit, together with the Close -out Report, a
request for a sum not to exceed the final twenty -five percent (25%)
of the loan amount.
4.17 Audit
Audits of the LOCAL GOVERNMENT'S project activities may be
conducted by the Municipal Division of the State Auditor's Office
in accordance with state law and any guidelines the DEPARTMENT may
prescribe. Payment for the audit shall be made by the LOCAL
GOVERNMENT.
4.18 Project Signs
If the LOCAL GOVERNMENT displays, during the period covered by this
agreement, signs or markers identifying those agencies
participating financially in the approved project, the sign or
marker must identify the Washington State Public Works Trust Fund
as a participant in the project.
PART V: SPECIAL ASSURANCES
The LOCAL GOVERNMENT assures compliance with all applicable state
and local laws, requirements, and ordinances as they pertain to the
design, implementation, and administration of the approved
project. Of particular importance are the following:
5.01 RCW 43.155.060
The LOCAL GOVERNMENT shall comply with the provisions of
RCW 43.155.060 regarding competitive bidding requirements for
projects assisted in whole or in part with money from the Public
Works Trust Fund program.
5.02 WAC 399 -30- 030(3)
The LOCAL GOVERNMENT assures compliance with WAC 399 -30- 030(3)
which identifies eligible costs for projects assisted with Public
Works Trust Fund loans.
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RECEIVED
FEB 0 9 1990
Public Works Trust Fund
LGA
ATTACHMENT 1: SCOPE OF WORK
PW -5 -90- 280 -050
City of Yakima
(Jurisdiction)
TIETDN
Reconstruction of Triton Drive
(Project Title)
1. Provide a clear description of the project to be financed in part by a Public Works
Trust Fund loan (attach an additional sheet if necessary):
This project is approximately 5000 LF in length and will consist of:
The removal or relocation of approximately 2200 LF of railroad track
and overhead catenary electrical system. Grind and overlay approx-
imately 24,600 SY of existing asphalt street surfacing. Remove and re
place approximately 3,500 LF of deteriorated concrete curb and gutter
and 1500 SY of deteriorated concrete sidewalk. Adjust valve boxes an
manholes and other street utilities as required. Remove old signal
system at llth and Tieton and replace with new mast -arm signal system
with underground conduit system and loops. Increase streetlighting
levels and uniformity along entire section. Acquire right -of -way at
llth and Tieton for proper left turn storage bay and adequate lan'
widths at that intersection.
2. The term for this loan will be based on an engineer's certification of the expected
useful life of the improvements, as stated below, or 20 years, whichever is Tess. If
the local government prefers the term of its loan to be less than either 20 years or
the useful life of the improvements, the preferred loan term should be indicated:
20 years.
3. I, Dennis E. Covell,Dir.of Enqr. &Ut4iensed engineer, certify that the
average xpected useful life for the improvements described above is 20
years. -
Signed'
Date February 6, 1990
Telephone (509)575 -6161
SCOPE OF WORK
Page 2
PW -5 -90- 280 -050
4. Estimated Project Timetable:
(based on the possible execution of a Loan Agreement by April 1, 1990)
Completion of Engineering April 1, 1991 (date)
Awarding Construction Contract May 31, 1991 (date)
Completion of Construction October 31, 1991 (date)
5. Estimated Project Costs:
Preliminary Engineering Report $ .00
Design Engineering 49,693.00
Land or Right -of -Way Acquisition 193,940.00
Sales or Use Taxes .00
Other Fees .00
Inspection /Construction Engineering 33,128.00
Start-up Costs .00
Financing Costs . 00
Contingency 63,496.00
Construction 552,140.00
TOTAL ESTIMATED PROJECT COSTS $892,397.00
6. Anticipated Fund Sources:
Public Works Trust Fund Loan $803,157
Note: The loan cannot exceed the amount identified above. Local Participation, not
Tess that 10% from:
General Funds
Capital Reserves
Other Fund
Rates
Assessments (LID, RID, ULID)
Special Levies
Federal Funds from
Other State Funds from
Other (identify source)
1/2 Gas Tax Money 89,240.00
TOTAL FUNDS $ 892,397.00
Public Works Trust Fund
ATTACHMENT II: ATTORNEY'S CERTIFICATION
I �` �r , hereby certify:
I am an attorney at law admitted to practice in the State of
Washington and the duly appointed attorney of the City of Yakima
(the LOCAL GOVERNMENT); and
I have reviewed Loan Agreement PW -5 -90- 280 - 050 to be executed
between the LOCAL GOVERNMENT and the Department of Community
Development (the DEPARTMENT); and
I have also examined any and all documents and records which are
pertinent to the loan agreement, including the application
requesting this financial assistance.
Based on the foregoing, it is my opinion that:
1. The LOCAL GOVERNMENT is a public body, properly constituted
and operating under the laws of the State of Washington,
empowered to receive and expend federal, state, and local
funds, to contract with the State of Washington, and to
receive and expend the funds involved to accomplish the
objectives set forth in their application.
2. The LOCAL GOVERNMENT is empowered to accept the Public Works
Trust Fund financial assistance and to provide for repayment
of the loan as set forth in the loan agreement.
3. There is currently no litigation in existence seeking to
enjoin the commencement or completion of the above - described
public facilities project or to enjoin the LOCAL GOVERNMENT
from repaying the Public Works Trust Fund loan extended by
the DEPARTMENT with respect to such project. The LOCAL
GOVERNMENT is not a party to litigation which will
materially affect its ability to repay such loan on the
terms contained in the loan agreement.
4. Assumption of this obligation would not exceed statutory and
administrative rule debt limitations applicable to the LOCAL
GOVERNMENT.
al NII■
Si•natu e of At rney - Date
ame
Address
DE. ARTMENT OF COMMUNITY DEVELOP14^, -NT
Ninth & Columbia Building
Mail Slop GH•51
Olympia, WA 98504
Public Works Trust Fund
SIGNATURE AUTHORIZATION
NAME OF ORGANIZATION
- DATE SU3MfTTED
City of YakLxia 5/4/90
NAME OF PROJECT CONTRACT NUMBER
Reconstruction of Tieton Drive PH' - 5 - 90 - 280 - 050
AUTHORIZED TO SION APPLKATiOHS/PXViSED APPLICATIONS
SIGNATURE AM PRINT OR TYPE NAME TITLE
/ Il
��L 6, Dennis E. Covell Director of Engr, & Utilities
i'" o To WON Ct��C /
SIGNATURE PRINT OR TYPE NAME TITLE
I R. A. Zais, Jr. — City Manager —
UTSOM ) T. ? SIN V CHERS
SIGNATURE PRINT OR TYPE NAME TITLE
r
!r A rr Dennis E. Covell jDi.ector of Enqr. & Utilities
wr
.. ..... ..
SIGNATURE PRINT OR TYPE NAME TITLE
e \'• R. A. Zais, Jr. City Manager